Derek McDowell (Labour)

This is a fundamental section which sets up the non-UCITS CCFs. It defines it in an entirely negative fashion. It says that a non-UCITS CCF is one that is not a UCITS CCF, or one that is not a partnership or a trust. For those of us who are not experts in these matters it is quite difficult to imagine what it is. It is an investment fund vehicle that does not fall into any of the other categories.

Perhaps the Minister of State can give us some background on the usual structure for investment funds in this country. I understand that UCITS are a minority sport and are often dealt with as unit trusts or as partnerships. In his response perhaps the Minister of State can provide the House with an outline of the structure of a non-UCITS CCF. I understand it is not a company but a contractual management system of some kind. As it is defined solely in a negative way one does not get an idea of what the Minister of State envisages.